When there is an external benefit, the unregulated market A) ...

[jilianpiloj]

When there is an external benefit, the unregulated market
 
  A) overproduces the good or service.
  B) underproduces the good or service.
  C) reaches the most efficient solution.
  D) maximizes public welfare.

Question 2

If two competing models are offered to explain a certain economic phenomenon, the better model is the one
 
  A) that is the newest since newer models are better than old models.
  B) with the fewest unrealistic assumptions.
  C) that more often predicts with most accuracy.
  D) that is not subject to empirical verification.

[djpooyouma]

Answer to Question 1

B

Answer to Question 2

C

[jilianpiloj]

Correct answers!

[djpooyouma]

Great! Please up vote